Allowed

State Bank of India v. Sh. Kaur Singh

DRT25 Nov 2025OA/660/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's original application instituted under Section 19 of the RDB Act for recovery of Rs.25,05,874. The court directed the defendant to pay the principal amount along with simple interest at 8% per annum from the date of filing till realization.

What did the court decide?

Recovery of Rs.25,05,874 plus costs and simple interest @ 8% p.a. from filing date till realization.

State Bank of India versus Sh. Kaur Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.660/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.02.2023

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DATE OF DECISION: 25.11.2025

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State Bank of India, a body corporate constituted under the provisions of the State Bank of India 1955(23 of 1955) and the successor to State Bank of Patiala under the Acquisition of State Bank of India order 22.02.2017 passed by the Central Government under section 35 of the State Bank of India Act, 1955 (23 of 1955), having its Central Office at Madame Cama Road, Nariman Point, Mumbai (Maharashtra) 400021 carrying on its business of Banking in India and abroad having one of its Local Head Office at Sector-17-A, Chandigarh having its branch amongst other places at Dehar, SAS Nagar, (Punjab) through its Branch Manager Sh. Pankaj Sanyal.

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……. Applicant

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Versus

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Sh. Kaur Singh /o Sh. Ram Dayal, R/o Village Dharamgarh, Tehsil Dera Bassi, District SAS Nagar, Mohali, Punjab.

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……. Defendant

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Advocates:

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Argued by Sh. Sachin Rana, Advocate proxy for Sh. Arvind Rajotia, Advocate for Applicant

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Defendant already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.25,05,874.00p (Rupees Twenty Five Lacs Five Thousand Eight Hundred Seventy Four Only). The Original Application has been filed through Sh. Pankaj Sanyal, Branch Manager of the applicant, who is competent to institute the Original Application.

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The brief facts of the OA are that the defendant had approached the applicant for grant of Agri. Term Loan of Rs.3.00 Lacs under KGC

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2 OA NO. 660/2023 STATE BANK OF INDIA VS SH. KAUR SINGH

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Scheme vide Loan Application dated 29.11.2011, along with its translation, which are Annexures A2 & A2-A to this OA and thereafter, approached for KCC Limit of Rs. 13.00 Lacs vide loan application, which is Annexure A7 to this OA.

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The applicant sanctioned Agri. Term Loan of Rs.3.00 Lacs vide sanction, which is Annexure A3 to this OA and sanctioned KCC Limit of Rs. 13.00 Lacs vide sanction letter dated 31.07.2015, which is Annexure A8 to this OA.

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Defendant had mortgaged his immovable properties i.e. (i) Land measuring 04Bigha situated at Village Dharamgarh, Tehsil Derabassi, District SAS Nagar, Mohali, Punjab vide Mortgage Deed bearing vasika no.15323 dated 03.01.2012, along with its translation, which is Annexure A6, A6-A to this OA.

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(ii) Land measuring 13Bigha-12Biswa situated at Village Dharamgarh, Tehsil Derabassi, District SAS Nagar, Mohali, Punjab vide Mortgage Deed bearing vasika no.175 dated 04.04.2014, along with its translation, which is Annexure A10, A10-A to this OA Documents executed : - Amalgamation Notification dated 22.02.2017, which is Annexure A1 to this OA; hypothecation agreement dated 05.01.2012, which is Annexure A4 to this OA; Letter of undertaking, which is Annexure A5 to this OA; hypothecation agreement dated 31.07.2015, which is Annexure A9 to this OA; Notice dated 28.03.2011, which is Annexure A11 to this OA; Revival letter dated 04.01.2015, 30.01.2018, 30.03.2018 and 15.12.2020, which are Annexure A12(Colly) to this OA and statement of account with certificate under Banker’s Books Evidence Act, which is Annexure A13 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.25,05,874.00p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA NO. 660/2023 STATE BANK OF INDIA VS SH. KAUR SINGH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 30.04.2024.

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In support of the OA, affidavit of Sh. Pankaj Sanyal, Branch Manager, State Bank of India, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,05,874.00p (Rupees Twenty Five Lacs Five Thousand Eight Hundred Seventy Four Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.45%p.a. with 2% penal interest in KCC & interest @11.15%p.a. with 2% penal interest in KGC, with half yearly rests from 25.11.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/hypothecated assets, undertaking of the defendant, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest

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4 OA NO. 660/2023 STATE BANK OF INDIA VS SH. KAUR SINGH

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@08.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,05,874.00p (Rupees Twenty Five Lacs Five Thousand Eight Hundred Seventy Four Only) with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.12.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal . Dated: 25.11.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

State Bank of India v. Sh. Kaur Singh

Case brief

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State Bank of India v. Sh. Kaur Singh

Case brief

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